Equity benchmark Sensex rallied 558 points on Tuesday, driven by gains in index heavyweights Reliance Industries, HDFC Bank and L&T.

The 30-share BSE index ended 557.63 points or 1.15 per cent higher at 48,944.14.

Similarly, the broader NSE Nifty surged 168.05 points or 1.16 per cent to 14,653.05.

L&T was the top gainer in the Sensex pack, rising over 3 per cent, followed by Bajaj Finance, Reliance Industries, IndusInd Bank, SBI and HDFC Bank.

On the other hand, Maruti, NTPC, Kotak Bank, Nestle India and Dr Reddy's were among the laggards.

Persistent strength in US markets has rubbed off on Indian stocks, with yesterday's dip in treasury yields ahead of FOMC decision also helping the overall risk appetite, said Anand James, Chief Market Strategist at Geojit Financial Services.

Banks have been quite upbeat lately and extended gains by over 1 per cent post noon, but it was metals that shone with over 2.5 per cent gains.

However, with April derivative expiry approaching, and with Nifty option premiums not pricing much above 14,700 for now, caution is recommended, he added.

With 3,23,144 people testing positive for coronavirus infection in a day, India's total tally of COVID-19 cases has climbed to 1,76,36,307, while the national recovery rate has further dropped to 82.54 per cent, according to the Union Health Ministry data updated on Tuesday.

Elsewhere in Asia, bourses in Hong Kong, Tokyo and Seoul ended on a negative note, while Shanghai finished with gains.

Stock exchanges in Europe were also trading with losses in mid-session deals.

With Nasdaq and S&P at record highs, the global support to markets is strong. The FOMC meeting starting later in the day will be keenly watched by markets for clues on probable trends in rates and yields, experts said.

Meanwhile, international oil benchmark Brent crude was trading 0.51 per cent higher at USD 65.36 per barrel.